Biotronik Defeats Whistleblower’s Nepotism Sales Scheme Lawsuit

Biotronik Inc. won dismissal of a whistleblower’s False Claims Act suit alleging that the medical device company billed the government for cardiac rhythm management products while engaging in an unlawful nepotistic sales scheme.

Whistleblower Sam Jones Co. alleged that Biotronik improperly billed the government because it didn’t disclose how a sales representative received commissions on sales made to his brother, a doctor that performed hundreds of surgeries to implant the cardiac products at a Los Angeles hospital.

But the suit was based on a New York Times article, and was therefore barred under the FCA’s public disclosure rule, Judge Philip ...